The fact that the new division will not represent landlords or take real estate listings eliminates a conflict of interest Atwater said exists among the many brokerages that offer both buyer and seller representation.

"It's human nature," he said. "I've seen it myself. If you're looking at a group of properties you could potentially show somebody, and one returns twice as much commission ....

"It's not that I think people in town are unethical or otherwise compromised in some way," he said. "It's just human nature."

A venture focused solely on tenant representation is new to the region, he believes, but is a standard in larger markets. If Grand Rapids were bigger, more firms would be able to survive focusing on only one side of a real estate transaction.

Although Waters Corp. develops, owns and manages property, it will avoid such a perceived conflict of interest, Atwater said. Right now, the company owns only 50 percent of a piece of vacant land.

"Waters Corp. will continue to invest in properties going forward," Atwater said, adding that any property Waters owns will be marketed by a third party, such as Grubb & Ellis|Para-mount Commerce.

While the new division puts Atwater into direct competition with such brokerages as GEPC and Wisinski Group, he said he believes a great deal of interest could come from businesses not using a broker to find a space.

"Ironically, people don't have to pay me," he said.

The tenant-rep fees will be paid by property owners, he said, encouraging businesses that want to cut costs to use his services.